According to Meat and Livestock Australia, the country’s hide prices declined during the first three weeks of June and then increased around 10% in the last week of the month.

The initial fall in price was driven by the slowdown in the world economy and reduced demand for consumer goods, particularly in the US. The demand for leather in China and Hong Kong was also down due to the SARS virus.

Since the end of the SARS epidemic, leather purchases have begun to pick up in China. Hide prices have fallen to a level that makes leather production profitable thus demand from Chinese and other Asian tanners has grown. Consequently, hide prices were pushed up by around 10%. Prices have also risen due to the expectation of hide shortages.

Australian skin prices have remained firm to slightly dearer, due to supplies being limited rather than demands increasing. There has been increased interest from China for lambskins, however there is currently a reduction in quality of the tail end of shorn lambs.

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